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Dividend Tax Calculator 2026/27

UK dividends get a £500 tax-free allowance (which still uses up band capacity), then are taxed at 10.75%, 35.75% or 39.35% depending on the band the dividends fall into.

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Estimated dividend tax

£3,396.25

Dividend Allowance (0%)£0.00
Dividend Allowance (0%)£0.00
Higher rate dividend @ 35.75%£3,396.25

Dividend Tax Calculator for Scotland

Dividend tax rates (10.75%, 35.75%, and 39.35%) are uniform across the UK. However, the band in which your dividends fall depends on your other income. In Scotland, while non-savings income (like salary) is taxed at Scottish rates (Starter to Top), the room remaining in your basic rate band for dividends is still determined by the UK-wide basic rate threshold (£50,270 including Personal Allowance).

Gift Aid & Pension Relief

If you make Gift Aid donations or personal pension contributions (SIPP), your basic rate tax band is extended. This can push dividends from the Higher Rate (35.75%) back into the Basic Rate (10.75%), resulting in significant tax savings.

Dividend Tax FAQ

Assumptions and limitations

  • Personal allowance tapers above £100,000 adjusted net income.
  • £500 dividend allowance at 0% still consumes basic-rate band space.
  • Assumes no pension contributions or gift aid in this simplified calculator.